The Karnataka government has presented the budget for financial year 2011-2012. The Gross Domestic Product (GSDP) of state will grow by about 8.2 per cent during 2010-11, driven by higher growth in primary and tertiary sectors.
In Rs 1,278.94-crore revenue surplus budget for 2011-12 financial year government has proposed to raise excise, motor vehicle tax and certain VAT .
Chief Minister Y S Yadurappa has proposed to increase rates of additional excise duty by 10 per cent to 20 per cent, and revised various motor vehicle tax rates and procedures
It is expected that this will generate Rs 1,020 crore additional resources for state.
Value Added Tax, VAT Incresed on Following Items
1. VAT on jewellery and articles of gold and other noble metals,
2. Precious and semi-precious stones have been increased from one per cent to two per cent;
3. VAT rate on goods currently taxable at 13.5 per cent would go up to 14 per cent.
Highlights of Karnatka State Budget 2011-2012
1. Interest free loans for higher education for farmer’s children
2. Agriculture revolving funds to be increased to Rs 1000 crore
3. Rs 100 crore for small ports , Rs 200 crore for organic farming
4. Seeds to be supplied to farmers at 50 percent subsidy
5. Rs 9 crore to encourage paddy and sugarcane production
5. Single window scheme to help farmers
6. Rs 25 crore for coconut cultivation , More neera processing units to be set up
7. Exemption of VAT for floriculture , Rs 2 crore to combat diseases that afflict areca plantation
8. Rs 10 crore for APMCs across the state , Veterinarian Colleges to be set in Gadag and Athini
9. Mega dairy at Mysore, Rs 2.5 crore for prevention of epidemics , Rs 10 crore as incentives for fish farming
Total receipts are expected to be Rs 83,729 crore for 2011-12, Rs 66,313 crore of revenue receipts and Rs 17,416 crore of capital receipts. Total expenditure is estimated to be Rs 85,319 crore (revenue expenditure of Rs 65,034 crore and capital expenditure of Rs 20,285 crore).